Attachement of gratuity, provident fund

Arun Kumar Bhagat (Querist) 09 February 2013 This query is : Resolved
Can gratuity and provident fund be attached in 125(3) Cr. P.C proceeding ?

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ANIL KUMAR 8867907494 (Expert) 09 February 2013
No, it can't be attached

Raj Kumar Makkad (Expert) 09 February 2013
Provident Fund amount consists of a clear bar under Section 10 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (for short 'the Act'), which reads as follows:

"The amount standing to the credit of any member in the Fund (or of any exempted employee in a provident fund) shall not in any way be capable of being assigned or charged and shall not be liable to attachment under any decree or order of any Court in respect of any debt or liability incurred by the member [or the exempted employee], and neither the official assignee appointed under the Presidency Towns Insolvency Act, 1909 (3 of 1909) nor any receiver appointed under the Provincial Insolvency Act, 1920 (5 of 1920), shall be entitled to or have any claim on, any such amount".

From the reading of sub-section (1) of Section 10 it is clear that the Provident Fund amount is not liable to attachment under any decree or order of any Court in respect of debt or liability incurred by the debtor.

The similar is position with the gratuity.

The exception is only when the husband has retired and such funds have finally to be disbursed.

Arvind Singh Chauhan (Expert) 09 February 2013
Raj Sir Thanks a lot for citing the perfect provision here.

Arun Kumar Bhagat (Querist) 09 February 2013
Thanks to Mr. Makkad.

Raj Kumar Makkad (Expert) 10 February 2013
Most welcome Mr. Bhagat.

Sudhir Kumar, Advocate (Expert) 17 February 2013
every type of PF inclduign Govt employees PF and PPF are immune from attachment.

Guest (Expert) 17 February 2013
Dear Arun,

Gratuity is also exempt from attachment under the provisions of sec.13 of the Payment of Gratuity Act. According to that, no gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5, shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

Arun Kumar Bhagat (Querist) 17 February 2013
Thanks Mr. Dhingra, I was also of the same view. To doubly sure I posted this query. It was necessary as I confined myself with criminal practice. Thanks again.